Not a good time for Timeshare Resales

[montygz]

I have some prime deeded weeks at some prime properties that I bought many years ago. I did buy them as resales but still had to pay a decent price for some of them because of location and week. I have looked on several sites, Redweek, Ebay, TUG, etc... and what I have noticed is that many of the deeded week properties are for sale for zero dollars and the sellers are paying the closing costs! What is going on? Really? I do not expect to get 10K for any of my listings but when you own June weeks at the beach in SC and NC and week 52 in the NC Ski mountains you do not want to give away your timeshares and I do not think I should pay the closing costs. I have been able to rent them if not using for a good profit but the point is I do not want my children to be burden with them when I am gone. I do not know if this is all due to covid that deeded sales have tanked recently but I am just rrying to decide if it is worth holding on for a bit to see if this improves or not. Any opinions?

If you want to get a good price, you need to offer a Visa gift card, some theme park ticket discounts and a free breakfast.

Seriously, timeshares are a complex instrument in an age where you can hop on 10 websites and rent similar accommodations.

As an owner, you can extract good value out of them in the right situations, but the learning curve is steep.

Do a search for a timeshare and you will be bombarded with ads on how to flee your horrible timeshare. Timeshares have horrible reputations and for good reason because of how are sold by developers.

Anyhow, when people start traveling again I predict there will be strong demand for accommodations, which should help sell some timeshares. People who like to rent timeshares will see rents increase which will make them consider ownership.

 

[Gypsy65]

I'm sorry but, is there a point to the comparisons?

Sure
TS are not as horrible as some bitch about
A value? Not anymore than that of a camper

or that steak dinner you paind $200 for and crapped out the next day

 

[bbakernbay]

Once the MFee delinquency rate starts climbing, as it certainly will in the majority of timeshares, then the remaining owners are going to be faced with substantial MFee increases and then the dominos start falling and the HOA collapses. This next few years will see an acceleration of this phenomenon.

 

[bnoble]

Once the MFee delinquency rate starts climbing, as it certainly will in the majority of timeshares, then the remaining owners are going to be faced with substantial MFee increases and then the dominos start falling and the HOA collapses. This next few years will see an acceleration of this phenomenon.

An increase in delinquency rate is likely, but a resulting collapse is not inevitable at all resorts. Those with a healthy rental market where demand is sufficient to support rental rates above ownership costs will be able to get by just fine. Others may be able to recycle delinquency into foreclosure and back into the sales process if they have an active sales activity---either there or in a general points system. One resort I own has used both of these strategies at different times.

On the other hand, you could argue that resorts that cannot support rental rates at least at ownership costs for most of the year should be dissolved.

 

[bbakernbay]

Some excellent points, yes the strong will survive but there are not too many resorts that have the weather or demand for 52 week rentals so that leaves a significant revenue gap.

In some instances foreclosure costs may exceed the sale price for many bargain basement timeshare HOAs.

There will certainly be some difficult times ahead over the next 48 months due to various factors related to the pandemic Including Fear of travel, border restrictions, insurance costs, astronomical medical bills, etc. are very real for many people.

 

[readytoretire]

If those June weeks are later in the month, oceanfront, and with broader name recognition (e.g. Marriott, Hilton, etc.) then yes, they are probably worth something. If they are not oceanfront, or early June, or not a place with a name that Joe Sixpack has ever heard of, then not so much. That's not to say you can't find someone willing to give you a few bucks for them, but it will be more work for fewer bucks.


When I think about annual ski vacations over New Years, I am not thinking about North Carolina as a destination, no matter how nice the resort is.

You have never seen so many Florida license plates in all you life! This year Sugar Mountain sold out of lift tickets everyday that week. Easy drive for thouse living in the southeast.

 

[bnoble]

That just means you have a regional destination that few outside the region care about. That limits your market and, ultimately, your price.

 

[TUGBrian]

it has most certainly opened the floodgates for reduced rental prices with very few resorts operating at full capacity!

Never Thought I Would See The Day

For the first time ever, I bought a 4-night Club Wyndham vacation outside of my ownership. It was advertised on eBay for less than $60/night in a 2 bedroom loft -- tax, everything included (waaaaay below what can be found in the TUG Timeshare Rentals Offered forum ;). The email confirmation...

tugbbs.com

 

[dgalati]

Sure
TS are not as horrible as some bitch about
A value? Not anymore than that of a camper
or that steak dinner you paid $200 for and crapped out the next day

The comparison between a good steak and a timeshare? At least the steak doesn't have a monthly maintenance fee attached if you decide not to eat it.

 

[dgalati]

it has most certainly opened the floodgates for reduced rental prices with very few resorts operating at full capacity!

Never Thought I Would See The Day

For the first time ever, I bought a 4-night Club Wyndham vacation outside of my ownership. It was advertised on eBay for less than $60/night in a 2 bedroom loft -- tax, everything included (waaaaay below what can be found in the TUG Timeshare Rentals Offered forum ;). The email confirmation...

tugbbs.com

Very Interesting situation when a Wyndham owner can rent for less then using his own points. Considering the VIP owner can receive up to a 60% discount along with a possible free room upgrade.

 

[tgropp]

Disney Vacation Club points have held/increased in value but who knows if that will last also

 

[hammerhammer]

If you ever buy a timeshare with resale value you mind you have already lost. This is one of the worst times for resale at that. Assigned weeks are also worth less than flex. If covid has shown nothing flexibility is worth something.

I own at Morritts and for some reason week 51-52 are worth more then flex weeks. Flex weeks are free right now and the fixed weeks are worth 2k-20k on the secondary market.

 

[DannyTS]

it has most certainly opened the floodgates for reduced rental prices with very few resorts operating at full capacity!

Never Thought I Would See The Day

For the first time ever, I bought a 4-night Club Wyndham vacation outside of my ownership. It was advertised on eBay for less than $60/night in a 2 bedroom loft -- tax, everything included (waaaaay below what can be found in the TUG Timeshare Rentals Offered forum ;). The email confirmation...

tugbbs.com

I do not think it will last forever because there is a lot of pent up demand. Once the majority of people decide it is safe (and we are only few months away from that moment I hope), everybody will want to travel at the same time. Not only people want to taste freedom again, they also have the travel money saved for 12-15 months, not to mention airline vouchers, air-miles that will have to be used. IMO we will have 4 years of traveling demand compressed in the next 2 or 3 years. Many points owners have a lot of dry powder accumulated but the week owners cannot book more than what they have every year, the capacity is what it is. I have been searching RCI and Interval, the availability is fantastic for few months than it drops to zero or near zero at most of the good resorts.I think this situation will be very evident once we reopen.
I think restaurants may also start to charge more once they reopen, not only many have gone out of business but those are still afloat have lost a fortune and they have to make it back somehow, not to mention people will probably not mind paying more understanding the situation. This may make the timeshares that have a kitchen more valuable.

If the demand starts to outpace supply at one point, the rental market may bounce back and we may see prices higher than pre-covid.

 

[The Colorado Kid]

I do not think it will last forever because there is a lot of pent up demand. Once the majority of people decide it is safe (and we are only few months away from that moment I hope), everybody will want to travel at the same time. Not only people want to taste freedom again, they also have the travel money saved for 12-15 months, not to mention airline vouchers, air-miles that will have to be used. IMO we will have 4 years of traveling demand compressed in the next 2 or 3 years. Many points owners have a lot of dry powder accumulated but the week owners cannot book more than what they have every year, the capacity is what it is. I have been searching RCI and Interval, the availability is fantastic for few months than it drops to zero or near zero at most of the good resorts.I think this situation will be very evident once we reopen.
I think restaurants may also start to charge more once they reopen, not only many have gone out of business but those are still afloat have lost a fortune and they have to make it back somehow, not to mention people will probably not mind paying more understanding the situation. This may make the timeshares that have a kitchen more valuable.

If the demand starts to outpace supply at one point, the rental market may bounce back and we may see prices higher than pre-covid.

Hear hear! I have noticed the same thing in RCI and II...the dropoff in listings is like a cliff

 

[WVBaker]

I own at Morritts and for some reason week 51-52 are worth more then flex weeks. Flex weeks are free right now and the fixed weeks are worth 2k-20k on the secondary market.

I for one, always preferred fixed weeks over flex, if it were weeks 51 and/or 52. Those are prime weeks in most areas. I like knowing I have those weeks secured ahead of time. Should I choose not to make use of those weeks, I know they will rent for top dollar on the open market.

 

[CPNY]

During the pandemic I’ve seen auctions for SVV one bedroom units on eBay end higher than they have been before the pandemic. Last week A SVV Key West 2 bedroom also ended for pre pandemic prices. I guess some TS haven’t been affected yet

As far as using my ownerships, I have been enjoying the low occupancy rates at these resorts and I am not looking forward to back to normal just yet. Trips to Orlando have never been so good. If you’re using your ownerships, this time can be really good for a TS owner

 

[DannyTS]

During the pandemic I’ve seen auctions for SVV one bedroom on eBay end higher than they have been before the pandemic. Last week A SVV Key West 2 bedroom also ended for pre pandemic prices.

I have been enjoying the low occupancy rates at these resorts and I am not looking forward to back to normal just yet. Trips to Orlando have never been so good. If you’re using your ownerships, this time can be really good for a TS owner

Because Vistana continued to buy back weeks to put them in trusts during the pandemic, I would not be surprised that platinum SVV mandatory continued to rise (or at least not go down in value) since the week ownership pool will continue to shrink. Also, many of the units that were sold on ebay are through exit companies but why anyone that is aware of the buyback program pay 5k to the exit companies when they can have the same result for free with zero headaches? As more and more people become aware of the program the cheap Vistana deals on ebay may end.

 

[kc01075]

Before buying any additional timeshares, be sure to review their balance sheet and study their restricted reserves in relation to what they should have in reserves. This may avoid future special assessments. Request information on their deed back process (and cost) or if the state allows for a quit claim deed back. Knowing how to exit ownership in today's market place is very important.

 

[mamasnow]

We are maintaining our deeded 2002 week in a Marriott resort (Canyon Villas in Phoenix) because we love it there and the golfing is the best, and we like the drive down from Denver. However, we also keep it because we are still able to elect Bonvoy Points when we can't use it (too late for 2020 thus we lost everything because we couldn't use what Marriott offered to replace the week) BUT, which we plan to use Bonvoy Points in a new plan new plan to use in 2022 rather than go to Phoenix. We are in Denver, and Denver and Colorado have been getting better in the pandemic while Arizona was late too start up but is now rated a high risk state. It will be time again to use our many many Bonvoy Points to do our vacations, probably going east for reunions later in the year. And, we still have until the Middle of April to decide on our 2022 week usage

 

[boraxo]

We bought our first timeshare this Year so I guess we are supporting the market for all of you
Seriously from what I see high quality prime units are doing just fine. And the dogs, well, are still dogs that you can’t give away. Personally I would not consider NC/SC to be prime but that’s my west coast bias.

The travel industry is shifting to more flexibility. A fixed week in a fixed location is a hard sell in the age of AirBnB. Things might change, but I tend to doubt it. In addition, think about this: If you think it will be a burden on your children to own it without paying for it, it will likely be even more of a burden on someone who is actually paying for it.
Sadly, things change. :-(

Could not disagree more. IME Most Airbnb are worse than they look and they cost a lot more with all of the garbage fees. For sure you get more flexibility but that has always been the problem with timeshares - they often don’t exist where I need them. That said there is no way I could get a week Airbnb in Lake Tahoe for $1500 (my annual maintenance fee) with beach access.

 

[Bearster]

I think that the current market is a tale of two cities. Demand has dropped for some high-end timeshares in locations that require long flights -- like Hawaii. However, school-vacation weeks at just generally upscale resorts near metropolitan areas or at Southeastern beaches have seen steadily increasing demand. By my estimate, the number of listings in these locations has dropped by one-third since 2019. Also my travels to these locations have revealed to me that many weeks are being occupied by owners (and their adult children and grandchildren) visiting again after many years. The timeshare market has seen new demand for rentals and purchases from the work-at-home nomad, eager for a change of scenery and an exercise routine that may involve skiing, hiking, or biking on the beach instead of a run around the neighborhood. Social distancing and cooking "at home" in the timeshare are the wave of the present. The on-site services of the timeshare are critical. House rentals involve too many variables if something goes wrong.

 

[Magus]

I’m not sure

I think that some of the old timeshare issues are now slowing starting to be addressed and believe it will be a little while for it to turn around
Not that your ownership will increase value. But that the benefits and ways to use it will be transferable to any buyer

Timeshares are big business and if all these resorts want that wheel to keep turning they’ll have to make them more appealing for resale buyers not just for them

I also think that some people may not want to jump on a jet and go travel especially if they’re hard core Covid scared or someone they knew died.
Therefore maybe prompting them to look at a TS for the ease and localized resorts that are easily travels to via a car

I for one, always preferred fixed weeks over flex, if it were weeks 51 and/or 52. Those are prime weeks in most areas. I like knowing I have those weeks secured ahead of time. Should I choose not to make use of those weeks, I know they will rent for top dollar on the open market.

My point was in general not a 100% rule.

 

[Magus]

We bought our first timeshare this Year so I guess we are supporting the market for all of you
Seriously from what I see high quality prime units are doing just fine. And the dogs, well, are still dogs that you can’t give away. Personally I would not consider NC/SC to be prime but that’s my west coast bias.


Could not disagree more. IME Most Airbnb are worse than they look and they cost a lot more with all of the garbage fees. For sure you get more flexibility but that has always been the problem with timeshares - they often don’t exist where I need them. That said there is no way I could get a week Airbnb in Lake Tahoe for $1500 (my annual maintenance fee) with beach access.

You may disagree but most travelers do not, hence why Airbnb’s value is over 100b and the entire hotel industry public stock - REIT and C - is lower

 

[dioxide45]

You may disagree but most travelers do not, hence why Airbnb’s value is over 100b and the entire hotel industry public stock - REIT and C - is lower

Are you claiming that AirBnB's market cap is higher than that of the entire hotel industry? Not sure I understand your post.

 

[Magus]

Are you claiming that AirBnB's market cap is higher than that of the entire hotel industry? Not sure I understand your post.

yes, Airbnb worth more than every public hotel company’s market cap combined, including the REITs like Host and Summit